Chapter 7 Bankruptcy is designed for debtors who are having to deal with monetary issues and are unable to settle their debts. If your present monthly income is above the State Median Income you might be expected to carry out a Means Test to ascertain if you are qualified for this type of bankruptcy. If you don't meet up with the requirements of the Means Test then you can be prevented from submitting a Chapter 7 Bankruptcy and hold the alternative of transforming to Chapter 13 Bankruptcy or filing a Chapter 11 Bankruptcy.
The goal of filing a Chapter 7 Bankruptcy is to receive a discharge of your prevailing debts. If, however, you are discovered to have done certain sorts of incorrect habits referred to in the Bankruptcy Code, your discharge may be denied by the Court, and the objective for which you registered the bankruptcy request will be beaten.
Within certain circumstances you might be in a position to retain possessions that you have paid for controlled by a appropriate security interest. Some alternatives contain what is called redemption and the restoration or reaffirmation of an active pre-bankruptcy financial obligation. Your
bankruptcy lawyer can explain the alternatives obtainable to you.
